Surgery Partners, Inc. (NASDAQ:SGRY) Q3 2024 Earnings Conference Call November 12, 2024 8:30 AM ET

Company Participants

Dave Doherty - Chief Financial Officer
Wayne DeVeydt - Executive Chairman
Eric Evans - Chief Executive Officer

Conference Call Participants

Jack Slevin - Jefferies
Joanna Gajuk - Bank of America
A.J. Rice - UBS
Andrew Mok - Barclays
Tao Qiu - Stifel
Sarah James - Cantor Fitzgerald
Bill Sutherland - The Benchmark Company
Benjamin Rossi - JPMorgan
Will Spivack - TD Cowen

Operator

Greetings, and welcome to the Surgery Partners Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

At this time, I would like to turn the call over to Dave Doherty. Please go ahead.

Dave Doherty

Good morning. My name is Dave Doherty, CFO of Surgery Partners. I'm joined today by Eric Evans, our CEO; and Wayne DeVeydt, our Executive Chairman. During this call, we will make forward-looking statements. There are risk factors that could cause future results to be materially different from these statements.

These risk factors are described in this morning's press release and the reports we file with the SEC, each of which are available on our website, surgerypartners.com. The company does not undertake any duty to update these forward-looking statements.

In addition, we will reference certain financial measures that are considered non-GAAP, which we believe can be useful in evaluating our performance. The presentation of this information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. These measures are reconciled to the most applicable GAAP measure in this morning's press release.

With that, I will turn the call over to Wayne. Wayne?

Wayne DeVeydt

Thank you, Dave. Good morning, and thank you all for joining us today.

Before turning the call over to my colleagues, I would like to share highlights of our third quarter financial results and our outlook for the balance of the year. This morning, we reported net revenue of $770 million, representing growth of greater than 14% over the prior year quarter. On a same-facility basis, net revenues grew 4.2% with surgical case volume growth in the quarter at 3.7%.

Adjusted EBITDA grew 22% to $128.6 million, generating adjusted EBITDA margins of 16.7%, expanding 100 basis points as compared to the prior year quarter. Our results were marginally affected by Hurricane Helene, which impacted several of our facilities and operations in Florida, Georgia and North Carolina, as many took precautionary measures in the last week of September. This storm and Hurricane Milton that followed, largely only affected the scheduling of cases, but we did have several facilities that sustained damage. At this point, all of our facilities are reopened, but some are only performing limited volume.